What we do: VAT

Our VAT service includes everything that your business needs to stay compliant with HMRC. We can register your business for VAT, prepare your quarterly VAT returns and can also handle HMRC compliance checks.

VAT for UK Businesses

 

VAT for Overseas Businesses

 

VAT for UK Businesses

If your business is a UK Limited Company or a UK Sole Trade then this is the VAT service for you.

If your business is based outside of the UK then you should read the VAT for overseas businesses section below.

When to Register for VAT – UK Businesses

Once your business is making taxable supplies (sales) of more than £85,000 then it will need to register for VAT. 

As an ecommerce business you may be making sales in countries that are outside of the EU (for example Amazon FBA USA). This turnover does not contribute to your VAT threshold.

If you are our bookkeeping client then we will actively monitor your taxable supplies each month and will let you know when you are approaching the VAT threshold. Find out more about our bookkeeping service here.

Registering for VAT

As part of our VAT service we will handle the VAT application process for you. 

We will prepare the paperwork and will submit everything to HMRC so that you business will be issued with a VAT number and a VAT certificate.

The process usually takes 3 working days, however, if HMRC have queries with the application, then it may take up to 2 weeks.

Making Tax Digital for VAT

Our processes are fully compliant with Making Tax Digital (MTD) for VAT. Read more about MTD for VAT here.

VAT for Overseas Businesses (NETPs)

If your business is not a UK resident and if it does not have a UK establishment then it is known as being a Non-Established Taxable Person (NETP). 

Essentially, if your business is based from outside of the UK, but stores and sells goods in the UK, then it is a NETP.

It is important to make the distinction because there are slightly different VAT rules for NETPs compared with UK businesses. 

Since we are Accountants for Ecommerce, we work with both NETPs and UK businesses.

If you are a NETP we can register your business for VAT and also handle the ongoing compliance work.

When to Register for VAT – Overseas Businesses

If you are a NETP then you will need to register for UK VAT as soon as you plan to make taxable supplies to the UK.

If you trade on a marketplace like Amazon or Ebay, you may find that if you do not apply for a VAT number, the marketplace will freeze your account.

HMRC usually take slightly longer when issuing VAT numbers to NETPs compared with UK businesses. Therefore, we always recommend applying for your VAT number before you begin the process of sending goods to the UK.

Contact Us

Ecommerce Accountants LLP
1 Mark Square
London
EC2A 4EG
Telephone: 020 7520 2676

Registered Company Number: OC413282
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